It’s another big week of market news. Read what’s on the radar today.

US equities continue to stride forward as small caps outpace large caps, cyclicals outperform defensive sectors and the Oil bull story continues to gain momentum.

There’s certainly elevated chatter that potential shutdowns in the US will weigh more in the near-term and maybe so, but investor sentiment is the most elevated since 2017.

Market internals are strong in the S&P 500 with 87% of stocks above the 200-day MA and 85% above the 20-day MA. Some will say this is a contrarian indicator and perhaps there’s too much love for stocks, especially when we’ve seen rising insider selling from corporate executives.

FOREX NEWS

The weekly implied move derived from options prices takes EURUSD into 1.1931 (with a 68.2% level of confidence), although any rallies into 1.2000 would be overdone this week and suggest countertrend and mean-reverting exposures.

GBPUSD also gets close attention this week post the departure of Dominic Cummings from his post, which raises the prospect of a trade deal with the EU at the margin. If a deal is forged then cable could be re-testing the 11 November spike high of 1.3312 quite readily.

Keep an eye on AUDUSD exposures too with consolidation seen between 0.7330 and 0.7220. There’s an elevated level of event risk this week for traders to navigate, with RBA governor Lowe speaking today in Sydney at 19:40 AED, Guy Debelle following on tomorrow at 17:00 AEDT. We see the November RBA meeting minutes tomorrow, with October payrolls released Thursday with expectations that 30,000 jobs will be lost, the unemployment rate due to rise 20bp to 7.1% and the participation rate to stay at 64.8%.